G20 Parallel Event: High-Level Dialogue on Mobilizing Finance for Indonesia’s Just Energy Transition
About
Ministry of Energy and Mineral Resources of the Republic of Indonesia in collaboration with the Institute for Essential Services Reform.
Meeting Paris Agreement’s goal requires rapid decarbonization of entire economies and industries. However, the process, scale, and speed of decarbonization vary among countries. In Glasgow, the Indonesian government has agreed to Global Coal to Clean Power statement to rapidly scale up technologies and policies in this decade to achieve a transition away from unabated coal power generation in the 2040s (or as soon as possible thereafter) .
Being one of the world’s largest coal producers and consumers, Indonesia is open to the possibility of adopting a more ambitious net-zero target and a 2040s coal phaseout with international support. Additional support is requested to address the broader socio-economic implications of achieving the 1.5°C-compatible coal-to-clean power transition and ensure the accelerated transition is also carried out in a just and equitable way.
IESR and the University of Maryland (UMD) study found that the coal phase-out could be made as early as 2045. The cost of retirement is estimated to be 4.3 billion USD through 2030 and 28.3 billion USD through 2045. About 2/3 of these cover the retirement of IPP plants, with rests for PLN plants. Significant international support will be required, particularly to jump-start the transition upfront. A similar scale of investment is also required to scale up renewables and transmission to replace the retired coal-fired power plants, estimated at 1.2 trillion USD through 2050.
With various financing mechanisms under discussion, it remains unclear how to evaluate just transition financing needs, what elements should be considered, and how to allocate the financing assistance among different domestic and international stakeholders. IESR and the University of Maryland (2022) identified the magnitude and distribution of the benefits and costs of a rapid, just coal transition in Indonesia to support the 2050 net-zero emissions target.
The high-level dialogue intends to bring various key stakeholders to have a better understanding of the pathway for just the energy transition of Indonesia and identify the financial needs to enable such a rapid transition. This dialogue intends to support the Indonesia Just Energy Transition platform and contribute to the outcome of the Indonesia G20 Presidency agenda.
Melia Bali Hotel
Jl. Nusa Dua, Benoa, Badung Regency, Bali 80363, Indonesia
Agenda
Note: Only selected participants will be invited.
Travel Info
Entry to Indonesia and Travel Requirement regarding COVID-19
We recognize that travel logistics are challenging at this time, and that there are health and safety concerns regarding COVID-19. For ease of access and avoiding additional travel time, we suggest International participants enter through Ngurah Rai, Bali International Airport.
All participants must comply with Indonesian Government health protocols. It is mandatory to wear a face mask in public and many public spaces require proof of vaccination to enter. Fines and other penalties may apply for violations of the restrictions.
All participants (domestic and international) must use PeduliLindungi application. Please download the application through Play Store or App Store
Testing
Highly Encouraged Testing: We highly encourage you to take a Covid test prior to travel, to avoid traveling with Covid and to avoid getting stuck in Indonesia while recovering.
Required Testing: To minimise health risk during the event, We will ask you to take an antigen or PCR test prior to attending our event. Test kits will be provided upon entering the meeting site.
Contact Person
Shall you have further inquiries regarding the agenda, accommodation, travel and other related business, please feel free to reach out to the IESR Energy Transition Program Manager Deon Arinaldo at deon@iesr.or.id.
